*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
* How to use the files to run the simulation			~~~~
*~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

*~~~~~~~~~~~~~~~~~~~~
* What you need     ~
*~~~~~~~~~~~~~~~~~~~~

The simulations are conducted in Stata (version 14.1). The user-written Stata ados needed to run the simulations are
"xtdpdml", "xtabond2", and "frmttable"; they may have to be installed before running the simulations.

Create the directory "C:\Simulations\Code\" and the subfolder "C:\Simulations\Code\Results". Copy all files in the "Code\" directory. 
(If you want to use alternative folders, change the folder names at the top of "_simulations_master.do")


*~~~~~~~~~~~~~~~~~~~~~~
* How to use the code ~
*~~~~~~~~~~~~~~~~~~~~~~
 
The master file is "_simulations_master.do". Running this file produces results tables and figures.

In the master (do-)file, all parameters for the simulations are set, as specified in Table 1 of the paper. By adjusting the parameters, all results
can be replicated , including the additional tests reported in the appendix. You may also change the parameters to explore other settings.


*~~~~~~~~~~~~~~~~~~~
* Summary of files ~
*~~~~~~~~~~~~~~~~~~~

"_simulations_master.do" is the master file that has to be run in Stata.

"1_simprogram.do" contains the program for the simulation, as written by the Authors.

"2_tables_POLS-RE-FE.do" creates results tables for pooled OLS, random-effects, and fixed-effects models.

"3_tables_FD-AB-MLSEM.do" creates results tables for first-difference models, AB estimators, and the ML-SEM method.
